The privatisation in Indian Railways is already started by flagging off Tejas Express between stations Lucknow and Delhi and they also announce their plan to running around 150 different private trains between different stations and 50 railway station with world class standards in nearer future. For that Indian Railways has formed a special task force to make a blueprint for how to achieve this target. This privatisation will help nation in terms of development and is similar to the privatisation of six airports.
The Tejas express is runs under planning of IRCTC which is subsidiary of the Indian Railways. IRCTC has propose some benefits for the passengers of Tejas Express with the combination meals, free insurance of up to Rs 25 Lac and compensation in case of train delays to reach its final destination.
The IRCTC is also listed in the BSE in October 2019 and become a new PSU (Public Sector Unit) and also perform well on BSE. This is also one step near to the privatisation. But as this is subsidiary of Railways there is not much real privatisation there to begin with.
The order for privatisation comes after Niti Aayog Chairman Wrote to Indian Railway Board Chairman V K Yadav proposing to form a Empowered group to drive the privatisation. Besides these two chairmen, department of economic affairs, ministry of housing and urban affairs, financial commissioner of Indian railways, also the Members of Engineering railway board and Traffic railway board are parts of the Group. The privatisation of 150 trains and 50 railway stations is done by the tender and bidding process. This bidding process is monitor by this Empowered group. This group will approve the bidding process along with bid documents, RFP, RFQ and various agreements.
The privatisation of Indian Railways is difficult on my prospective because the operations of Indian railways is strongly vertically integrated. Also, Railway minister Piyush Goyal state that “Government was ruled out privatising the national transporter till BJP is in power and said the government was exploring ways to bring in larger private investments in the sector.”
The Indian Railway is also introducing a 100-day agenda in which the railways had plans to privatise its seven rolling stock production units to achieve better efficient. Indian railways also introduce a new program Trains for Film Promotions named ‘Promotions on Wheels’ that will serve as an additional source of revenue for the national transporter.
So, on my point of view it is only start of some part of privatisation. And I am not able see the full Privatisation of Indian Railways in nearer future because the policy of government. Which is Tendering and bidding process while selecting of party in which they force them to work in lower profit margin. The other policy is that the private companies has to give compensation to their passengers when the train getting late to reach its final destination. And on time schedule is possible only if the whole system of railway is privatising. The recent BJP government is not fully convinced to privatise the major transport of India during their tenure.
Author Details
Raj Shah | PGDM (IM) | 2019-21
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Raj has completed B.Tech. (Elec). He is currently pursuing PGDM in Infrastructure Management (2019-21) at AIIM. He has prior work experience in marketing field in prima automation (India) Pvt. Ltd. He has also published two research papers in the field of Power Electronics. He is enthusiastic to explore current affairs and he is a go-getter type of person.
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